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Consider the Following Entry Game: Here,firm B Is an Existing

question 90

Multiple Choice

Consider the following entry game: Here,firm B is an existing firm in the market,and firm A is a potential entrant.Firm A must decide whether to enter the market (play "enter") or stay out of the market (play "not enter") .If firm A decides to enter the market,firm B must decide whether to engage in a price war (play "hard") ,or not (play "soft") .By playing "hard," firm B ensures that firm A makes a loss of $2 million,but firm B only makes $2 million in profits.On the other hand,if firm B plays "soft," the new entrant takes half of the market,and each firm earns profits of $4 million.If firm A stays out,it earns zero while firm B earns $8 million.Which of the following are Nash equilibrium strategies?

Recognize the significance of ethical behavior in business, including the treatment of others and adherence to organizational rules.

Comprehend the laws and principles surrounding employee rights and the termination-at-will doctrine, including its limitations and exceptions.

Differentiate between laws, ethics, and social norms, and understand their roles in governing personal and professional conduct.

Analyze the effects of moral development levels on decision-making and behavior in business settings.

Definitions:

Technical Experts

Individuals who possess a deep, specialized knowledge in a particular field or technology, often consulted for their expertise.

Internal Customer

The person who depends on the other people in the company to provide the services and products for the external customer.

Mediator

A neutral third party who assists in resolving disputes by facilitating communication between conflicting parties with the goal of reaching an agreement.

Customer Service Ethics

Moral guidelines that govern the behavior and practices of individuals providing services to customers.